Community's Net Income Dips
MUSKEGON — Community Shores Bank Corp. reported second quarter 2007 net income of $18,000, or 1 cent per diluted share, compared with $342,000, or 23 cents per diluted share posted in the year-ago quarter. Income was also down sharply from the first quarter of this year, when the company reported net income of $229,000, or 15 cents per share. Earnings for the first six months were $246,000, or 17 cents per share.
President and CEO Heather Brolick said the company is making progress on several of its recent initiatives designed to enhance revenue, but that the bank has not yet realized a consistent return on the significant investments it has made over the past nine months.
“Our new branches are attracting lower-costing local funds, which are changing our deposit mix and will be reflected in continued favorable trends in our net interest margin,” Brolick said. “Our fee-based initiatives are performing well, although they, too, are in the early stages of development. Our SBA program is solid; however, the production nature of the SBA business line income is such that non-interest income contributions will continue to be erratic.”
Brolick said that despite an extremely competitive rate environment, Community Shores is finding quality growth opportunities in an otherwise slow environment.
During the quarter there was an increase in nonperforming assts due to a single commercial loan of $728,000, which that became 90 days past due. The loan was restructured in July.